Expect Nifty to open on negative note, support at around 9850: Stewart & Mackertich

Taking global market cues Nifty is expected to open negative and likely to remain under pressure as long as it trades below 9950. Downside pivotal support is placed around 9890. Below 9890, next support is placed around 9850, says a report by Stewart & Mackertich.

Stewart & Mackertich’s Technical View:

Taking global market cues Nifty is expected to open negative and likely to remain under pressure as long as it trades below 9950. Downside pivotal support is placed around 9890. Below 9890, next support is placed around 9850.

Yesterday, Nifty ended 0.71 percent down at 9908.05. Early morning negative momentum got carried away throughout the session towards ending the session with a big bearish candle nearer to its 30 Daily EMA placed around 9890. Nifty's intraday tiny wave lengths on the bearish side suggest it may remain under pressure in tomorrow’s session as well. However, considering Nifty broader pattern where its 30 Daily EMA is positioned around 9890, we don’t prefer being aggressive bearish. Sector and stock specific movements are going to be the key focus. In case of extension of this retracement leg, Nifty may come down to 9850 level.

On the Nifty hourly chart; it maintained below both 50 and 100 hourly moving averages. However, most crucial 200 hourly EMA placed around 9900 level may act as a pivotal support.

Considering Nifty multiple time frames and overall chart pattern that shows; Nifty closed nearer to its 30 Daily EMA, which may act as a pivotal support for in tomorrow’s session. Intraday pullback may find it difficult to penetrate upside resistances 9950 and 9990.

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